The Japanese Yen soared against its top counterparts in overnight trade, adding as much as 0.7 percent on average, after the Bank of Japan opted to keep all the elements of its monetary policy regime unchanged. Traders were expecting to see Maasaki Shirakawa and company expand stimulus as the BOJ attempts to meet its inflation target of 1 percent, which would require doubling the rate of price growth recorded as of March.

The BOJ announcement compounded existing sentiment-driven upward pressure on the Japanese unit as Asian stocks sank, driving capital into the haven currency. The rout likely reflects jitters ahead of today’s EU leader’s summit as traders ponder an endgame to the latest debt crisis flare-up that may include Greece’s exit from the Eurozone. Not surprisingly, the stocks-linkedAustralian and New Zealand Dollars bore the brunt of risk aversion in the FX space.

The EU sit-down is being billed as an “informal” working dinner. German officials were busy taking to the wires yesterday to pour cold water on expectations for what may emerge at its conclusion. A statement on Greece, the issuance of joint Eurobonds or any specific policy decisions in general are – according to German sources cited across the spectrum of newswires – not to be. That has left traders understandably confused as to what will in fact be said.

If the German public line is taken at face value, the conversation will center on the European Investment Bank (EIB) and how it can be used more effectively to boost growth, presumably without compromising deficit-reduction efforts. If that is indeed the case, disappointed selling seems likely to descend upon the Euro and spectrum of risky assets at large. S&P 500 stock index futures point to a decidedly dour mood across financial markets, trading down 0.5 percent ahead of the opening bell in Europe.

Elsewhere on the calendar, minutes from this month’s Bank of England rate decision seem unlikely to generate significant fireworks from price action after hawkish overtones that seemingly emerged at the April sit-down were swiftly scattered with last week’s quarterly Inflation Report. Yesterday’s soft CPI print also helped on this front, muting the shock value of a dovish outcome while arguing forcefully against a hawkish one.